Bitcoin

Cardano (ADA) is in catastrophic state, Bitcoin (BTC) future to surprise it, Solana (SOL) can still be saved: here’s how by U.Today

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U.Today – is probably in the worst shape we’ve seen this year. In its current state, ADA is moving below all major moving averages on medium-term charts. Unfortunately, the main reasons behind this poor performance are multidimensional and go back to Cardano’s fundamentals.

The chart looks bleak for ADA. The cryptocurrency was seen trading under its 50-day, 100-day, and 200-day EMAs. This implies a downtrend. All of this underperformance stands in stark contrast to the optimism surrounding Cardano at the start of the year. The inability to hold above these ever-important levels likely indicates that there is little buying interest and therefore confidence in ADA, where maximum caution is required.

One of the main reasons behind this decline is the high-level competition within the blockchain ecosystem. While Cardano has made progress in creating an ecosystem around the platform, it is, in particular, catching up to more popular ones like and .

the future

Bitcoin surpassed the $70,000 threshold but failed to gain a foothold above it. Unfortunately, the market is reacting in a strange way: the Ethereum ETF mania brings mixed trends to the market, from extra bullish sentiment to suppressed market performance in a matter of days, if not hours.

BTC price action encountered a strong barrier after a positive breakout of the psychological $70,000 level, retreating slightly into consolidation around $67,500. In the chart below, it is evident that Bitcoin is ferociously trying to stay well above the main moving averages, including the 50-day and 100-day EMAs.

This was further confirmed by the large spikes and falls recorded in volumes in recent days. Wild volume indicates an absolute lack of committed direction or trust among traders.

Of course, don’t forget the Ethereum ETF craze. On the one hand, the approval of Ethereum ETFs sparks new optimism and an overall upbeat tone – which has been reflected in soaring prices and activity.

In the future, these acceptances could help Bitcoin remain at levels from which it can rise further. Next in line is the 50-day exponential moving average at the $66,683 dynamic support level, with the 100-day EMA closing at $64,890. If BTC remains predominantly above these supports, it will give bulls a chance to test the $70,000 high.

On the contrary, the break of these support levels will show continued bearish activity, and the next critical support level below it is $62,521. This will likely increase market uncertainty and could bring substantial volatility within reach.

Solana bears are not that strong

Despite Solana’s current state, trading volume suggests that SOL bears are slowly losing their power, and maintaining the current pressure on the asset may become impossible in the near future, therefore, recovery may become a realistic scenario.

Solana has seen a more stable performance this week after coming into contact with the critical $165 level. This comes after a decent cut for the overall market where most cryptocurrencies lost value. Trading volumes, in any case, show that the bearish momentum may be starting to stall.

The chart reveals that SOL is being held above critical support levels, mainly the 50-day and 100-day EMAs. This continues to be a positive indication that the asset has remained above these moving averages. They are very indicative, however, that the asset is still in a bullish stage despite the downward movement pressure at the moment.

Buying interest in SOL remains stable despite volume falling from early year levels. The gradual decrease in bearish volume is an early positive sign for buyers of a recovery in control.

With volume extended on the higher side, look for a move higher to signal a new bullish extension phase. Note: If Solana declines and fails to hold above the $150 support level, it could double the top and fall, although this seems less likely now given current indications.

This article was originally published on U.Today



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